mom and dad, i have great news. is now providing answers families need. siemens. answers. it is 2:00 p.m. on wall street and we are going back in time because it certainly feels like it's back to the future. we're in a new cold war with russia, microsoft is the new hot tick stock and we have ipos with no profits and virtual reality thanks to facebook buying a gaming start up.

>> we're up as much as 98 points earlier today and suddenly we're down. you have microsoft on the down side. mary is there one thing we can count to that says why did we do a 150 point u-turn? >> we can pinpoint it exactly but there's nervousness that happened about an hour or so ago, actually less than that. take a look at a chart of the dow. initially it was thought that the nasdaq which had been sliding most of the day dropped below yesterday's low for a moment but then take a look at what's happened in the ten year as long as the dollar yen. we say someone moving in and pushing the yield on the ten year lower at the same time. look at the yen. there was a move meaning dollar weakness. there's been a sharp move with the risk off trade that we have seen and investors prior to this were taking a fairly defensive position. the winners today include health care stocks and consumer staples trading to the down side. we are seeing continued weakness

in tech and the material stocks as well in today's session. so, again, can't pinpoint it exactly but just about 1:30 or so we did see a sharp move basically to the down side in the markets and then also to the down side in yields. basically investors moving into bonds and also into the yen which weakened the dollar. back o you. >> mary thompson has also been covering the king digital ipo all morning low. that's the theme folks. a lot of people out there, jim cramer among them says does this signal something. are they getting frothey. maybe not in king but in general. we take a closer look at king's valuation with companies that are maybe not similar but in the same group. first of hasboro. 4.1 billion in sales. market cap $7.2 billion.

forward pe. 118 million in operating income. a $9 billion marking cap and forward pe of 18.9. fine, now to king digital. 2013 sales, $1.9 billion. here's the big number to pay attention to. $568 million in net income. they make a lot of money on their sales. their market cap. now about $6.3 billion but it's fluctuating with the stock price. ford pe, right around, look at that, 11.6. we need to wait for more earnings estimates and expectations. that could change as well but the idea being guys is this the sign of an overvalued market? 11.5 times forward earnings. let's talk more about that. that's your market theme today and move on here and bring in michael. he is founder and ceo. i was among those saying king digital, guess what, 11.6 times forward earnings is less than

hasboro. >> but that's not the number to look at. what you need to look at is what is the numbers in terms of the 2012 sales. the numbers are significantly less. they're one tenth of what they were in 2013. the other companies that you actually mention redirect examination more established companies that have more consistent cash flow over longer periods of time. that's really the key issue. if you look at priced to sales or price attornto earnings. but is ever going to play candy crush forever? that's 80% of the company. my question to you would be why would you invest in a company, even though it has an 11 pe when the company has no track record except for one game. >> i've got the solution for you, michael. it just has to come up with another hit monster game. easy, right? >> that's it. that's all they have to do. all that baeanie babies had to o

was come up with another hit. all we needed to have is another tulip craze. if you really look at what's happening here, it's all based on an expectation that this company is going to continue to deliver results based on one game. they might. if they do then it's a cheap stock. >> this segment is not about king. it's about the stock market valuation. do you hi that king digital signifies a market top because it's a $6.5 billion company that gets 80% of its revenue from one product? >> yes, i do. i think what's happening right now if you look at the numbers copping out from places like king, it think it really does suggest that you're starting to see maybe not the best smarter money moving into the market right now. if you look at what's happening in terms of valuations, valuations are getting stretched on high pe stocks. it's a momentum market and that tends to be a time when investors need to be cautious

and move back into cash flow names and take some profits. so yes, i think the market is getting like that to say the least. >> great to see you, buddy. >> i have to jump in with one personal antidote. you know the raven? >> yes. >> i saw maybach on the road. that may be the market equivalent of the raven. >> the raven. facebook is also making a really big bet on the future, snatching a virtual reality gaming company, oculus for $2 billion but is another big activities qu -- move worth their money. do you think he really wants it for oculus or does he just want to stop someone else from getting it like google? >> how's it going? it's a few things honestly. first, facebook and google seem

to be the two big internet companies out there at least in consumer space that are buying up all of these small consumer start ups and part of it is, yes, google bought nes and is into wearables like google glass and they're working on a smart watch so what can facebook do to keep the next big thing out of google's hands. but the other part is essentially mark zuckerberg future proofing. it's trying not to miss the next big wave of consumer activity which for us, at least from this last five to ten years, has been mobile. which facebook was late to. >> do you feel, mike, then that in this deal and maybe what's app too that zuckerberg is aware his stock is rocking? he's got cash to play with? he's got shareholder money to play with and he can go out and spend whatever he wants. >> exactly. it's funny especially after the

what's app deal, you didn't see the stock take a dip. that blew my mind. i thought investors would hate it. it kept rising. right now as long as they're delivering consistent revenues on mobile, which they have been pretty much for the past year, i think they're going to be able to play it loose, like he has been doing and zuck thinks like decades into the future, at least from my understanding of how he sees these. >> his brain is so big he's two people in one. mike, let me ask you a more basic question. what's app now, what is facebook right now? what is it? >> that's really great. so five or ten years ago when they started out you would have said something like place to share photos or pictures and keep in touch with your family or something. but the way that facebook and zuck positioned this purchase in particular, oculus and what's app, facebook is becoming a communication platform.

so it's less about just being in touch with your mom and dad and more about finding new ways to get in touch with essentially the rest of the world. >> mike isaac, senior editor, great cothere. it's the worst day for facebook since november 18th. it lost 6.5%. >> somebody get mike out of traffic. going back to the future again. it's our theme today. microsoft. we're going back to july 2000 to be exact. that's the last time microsoft shares have been this high. they're down a bit today but the stock has been rocking. let's bring in ed mcguire. we're only about a buck away from your price target. are you thinking of raising that target or telling your kliclien to look elsewhere for gains. >> i'm going to look at my target. microsoft has a lot of long-term plans underway that we'll hear a lot more about when he has the press conference tomorrow. this is a company that's taken the long view for the last

decade building a really compelling franchise around enterprise cloud services. i think that the market hasn't really valued the stock as a cloud company. you eluded earlier to a number of these high flying internet stocks that investors have been piling into. meanwhile, microsoft has been quitely assembling this franchise with an enormous amount of value and healthy growth and innovations that may be just around the corner as well. >> and you're not even as bullish as some of the other houses out there. i think jeffreys has got a 47 price tag and what they were saying yesterday was this is a new mind set. this is a, quote, new era. do you agree with that? >> i think that it is a new era. but there's been a lot of signs that microsoft has been more open over the last couple of years to technologies.

it's not this windows only mind set. they just open sourced the windows and word source code in the last day. there's expectations that they'll make. microsoft as your platform is much more supportive of different versions of lennox. microsoft has been a big contributor to a number of open source products. these have been changing over the last decade. it takes a new leader with a fresh set of eyes to express with that troops and investors and customers. >> i'm off for the next few days. i'm just that lazy. what is microsoft? what are they going to be? >> microsoft is a cloud services company that's going to make money, delivering infrastructure. >> that sounds like lower margins than running native application with subscriptions. >> well, you know what's a cloud service though, anything that's an application delivered over the internet is a cloud service. so maybe i should be a bit more specific and say that they

really are an application enablement company but they're focussing on all types of devices. they're not just a windows operating system anymore and they have a killer franchise that gives them a little bit of fuel to play with some of the more speculative investments. >> as we were saying yesterday, everybody wants to be in the cloud. >> everybody is. >> that's why margins are going to zero. >> that is the problem. as ed mcguire mentioned we're going to be hearing from microsoft ceo nadella tomorrow. it's a big important comment and cnbc will have live coverage. where? here on street signs tomorrow? >> it's fantastic. it's an upgrade, man. >> boy does he have big shoes to fill. netflix down 19%. so is the high flying run done? we'll debate. >> we showed you scary scenes of the luxury apartment complex in

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>> this on the heels of a bloomberg report about a possible merger citing several people with information on the

matter. he made the report on the proposed take over of time warner cable. a possibility of the deal between the two has been talked about by analysts and investors for some time now. back in november of last year, ergen said during dish's conference call that quote there's a business case that consolidation makes a lot of sense in the satellite business. whether it ever comes to fruition is another story but both dish and direct tv realize it could make a lot of sense. now that a possibility of a cable merger is in the cards. that might be driving the renewed chatter here. comcast is the parent company of nbc universal. >> that it is. where does america stand on two of the biggest economic issues of the day? our results of our exclusive all american survey. >> venture with me into the domain of the political economy. we find the obama administration

winning one issue and losing another. let's begin with the bad news on healthcare. we see here, let's zoom in. we're talking about our september poll in blue, december poll in green and the current poll in orange. what's happened is a light rise in those who gauge obamacare in a positive way and that all it does is get back what happened. the decline that happened in december because of the whole problems with the internet. a very slight decline and a large percentage of americans view it neutrally or they're unsure. why is that? because for a democratic issue they're pretty lukewarm on this. just 57% of democrats supporting obamacare. 25% of democrats. look how negative the gop is. 85% having negative views of obamacare with 49% of independen independents. the issue is much closer than the gop. moving on now, take a look here. one reason is because people have not felt the effects of this. at least not reporting it. 11% of americans sold us they

received health care for the first time in the past year. either they got it for the first time or got it again after having lost it. only 40% gauge it's because of the new law. that's the bad news. now on the minimum wage issue and raising it to $10.10. it went up by three points but the bigger news is in the blue bar which is those that strongly support it. that went up more than 10 percentage points. that's a big deal. support for raising that minimum wage going up and you can see here strongly negative on it went down just a little bit. but it's really curious. we can't really figure out why people support this. take a look when we asked them what do you think is going to happen when we end up hiking the minimum wage. so first here, let's go over here. 39% say it will be more fair when we hike it but 70% say it could increase prices. moving over here, people say it has no effect on poverty pretty much in general. and also that it would probably cost jobs. so that's a big issue. so we wonder why, and have to

come back to this thing right here. this issue of economic fairness. had to pick one reason. it's the one place where the minimum wage will have a positive effect right here. we also ask, guys, if the cbo says it could cost a half a million people to lose their job or bring about 1 million people out of poverty, which would you choose? 47-40 they said bring people out of poverty is more important than the cost of people losing their jobs. that might be the reason why this minimum wage has such strong support in the country. >> do you think it's going to change anything? >> i think this kind of support and the politicians look at these numbers and other numbers showing it. it does matter when we get around to talk about it. the economics are interesting to me. >> you can read it all online. cnbc.com. all the results of the survey are there. >> fantastic. >> sure. >> we don't talk about derivatives on this show. they're complicated and they can

be boring but it doesn't mean they don't matter. they impact everything from gdp to unemployment. here now based on a new report he just came out with, ross, thank you for coming on. >> thank you, brian for having me. >> since the financial crisis, derivatives have become a 4 letter word. you know what i'm talking about. >> i do. >> in your paper, though, you argue they do do some good. most people may not believe that. make the case. >> i would make the case if you look in the aftermath of the great recession, just to look at the role that derivatives play in commerce, for example, what we try to do is look at how the use of derivatives translates into broader economic growth. a farmer uses futures to lock their price in or a company like united might hedge fuel costs in order to plan better for the future. >> all right. so derivatives, though, you highlight some good things, have been blamed for much of the collapse because people didn't know, you know, how much leverage there was. there was derivatives for

derivatives. do you believe in your new research, and this is important, that the systemic risk of derivatives has been reduced? have we gotten smarter? >> i think we have gotten smarter with the financial regulation we put in place in terms of making sure there's enough collateral in place so that people can meet their obligations. our study shows that by the use of derivatives for banks and nonfinancial firms, you actually boost gdp growth by about 4 billion each quarter and over 10 years that translates into $150 billion of additional economic output and more importantly it increases employment over that decade by about 530,000 and boost industrial production by about 2%. >> i assume the rest of it can be read on your website. >> driving the economic impact of derivatives. >> thank you very much. we'll go check it out. ross, we have to go.

>> thank you brian. >> still ahead, why a long time panera bread bull lost his appetite. >> and the unbelievable rescue during this massive inferno. some brokerage firms are but way too many aren't.o.'d why? because selling their funds makes them more money. which makes you wonder. isn't that a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for you. e*trade. less for us, more for you. the fund's prospectus contains its investment objectives, risks, charges, expenses and other important information and should be read and considered carefully before investing. for a current prospectus visit www.etrade.com/mutualfunds. if you have moderate to severe rheumatoid arthritis, like me,

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to washington state where the search and rescue continues for as many as 176 people still presumed missing after a massive mud slide five days ago. jennifer has the very latest. >> at first light today crews continued the very difficult and tedious task in the slide zone. their first priority, to pull out those 8 additional bodies spotted in the rubble yesterday and try to identify them. that would bring the total death count to 24 in this disaster. but in a press briefing this morning, officials say they're not moving off any of the numbers until they have the victims identified. what they did offer is a media tour of the slide zone t wreckage, the rubble, and the search continuing in there this morning. it's our first up close view of what the crews are dealing with as they work at this difficult task. we're expecting those pictures to be back by the middle of the day and we also are expecting

more information on some of the things that they're using to look for the victims. some of the more high-tech devices. the cameras that can go into decree the crevaces. it continues today and they're hoping to give families answers. whether it's good news or bad news, they just want to know what happened to their loved ones in this mud slide. in arlington, washington, back to you. to texas now, what you're seeing here is part of a story that we broke here on street signs yesterday. you might remember. the apartment building that you can see here engulfed in flames was under construction at the time but one construction worker barely made it out alive. janet has the full story. >> oh my god. >> do they see him? >> frightening moments caught on camera tuesday. a cell phone video captured a

five alarm fire in downtown houston that left a construction worker dangling dangerously from a balcony. >> the worker stood outside the 5th floor as the massive blaze engulfed the $50 million apartment complex still under construction. karen jones works across the street and started recording when she saw the fire. >> it was very scary. we were all near the windows. just -- people were afraid. you know, people were just wondering is this man going to make it? are they going to get to him? >> the worker waved for help before hanging down and jumping to a lower balcony as the inferno inched ever closer. >> oh no, oh no. oh no. oh my god. >> i was really just fearful that he one going to make it off of that ledge and when he jumped and he slipped, we were frantic. >> firefighters fought to get a ladder close to the balcony. >> they need to move that truck

up. >> brad haw tothorne was on the edge of the ladder and made the save. >> i said come on and he jumped and i said hang on. >> as they finally got him off of the ladder and the building began to crumble, it was horrifying. >> oh, no. >> horrifying moments that ended in rescue and relief. >> they got him. >> nbc news houston. >> absolutely incredible footage, right, brian? thank god he made it out alive. >> exactly. there's always somebody there to film stuff these days. >> yeah. >> next up, the gps and gambling addition of street talk. plus three names he's shorting now but not for the reasons you might think. >> later on we'll ask a long time panera bull why he lost his appetite for the stock. that's ahead. >> the cnbc real-time exchange

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>> it's your last street talk for the week. it's a furniture firm skyrocketing today. it's after a upgrade from raymond james. >> $19. so potential upside of 30%. they beat fourth quarter estimates by a penny. 2.4%. >> okay. garmin getting an upgrade. >> they have high expectations for the new fitness band. target increased to 65. the stock is at 55. shares have surged already. 62% the past year. not bad for a company that many people said was left for dead a number of years ago. >> i remember. >> exactly. exactly here on street signs.

those shares are tanking. 39%. cutting by 18% to $9. which is -- >> it's what? i couldn't make that out. you were chuckling. >> yes, well, you can say it. >> well, the stock is at $4, $3.90 a share so the target is $9. basically the problem is a drug trial. they're going to continue the drug trial. some analysts thought the data should be good enough to stop it. meaning just go to market now. they can't do that so it's a negative sign. >> okay. the carlyle group is seeing a nice upswing. >> yeah, target increased slightly to $38 well above the current price of $33. $5 a share. solid growth opportunities. they also love the pact that carlyle hired jp morgan executive michael cavanaugh and

call it a win for the company. >> it's down by about 1% despite the fact that they've got an upgrade to out perform. >> yeah, target increased 15% to $15. folks, that's about 28% upside. pen is on the road to regional recovery. investors hope so. that stock down 18% here today. from street talk to talking numbers. let's talk netflix. the stock is down 19% over the past month. on the fundamentals, chad of washington crossing advisors, here's my question. what has changed in a month for netflix that the stock should fall this month. >> concern about overall competition from players in the industry. the apples of the world. the amazons of the world. but we believe that this company with 41 million subscribers has established something that cannot be competed with. we believe that the stock can go up to around $450 a share.

when you go through the numbers, they are pretty compelling from a growth perspective. they have 20% revenue growth. so you'll go from 5.5 billion in review this year in 2014 to 6.5 or 7 by 2016. we also think this company will potentially view an acquisition target if you look at it like they have to go into competition. would it be better for apple or amazon to acquire the company. the market cap of this company is 22 beside. they're competing with mega cap technology names that have lofty evaluations as well. >> chad we were talking about that exact same topic just yesterday on this fine program. should apple just buy netflix instead of trying to take it on. you mention amazon as well though and i guess amazon had the idea of amazon doing it. who do you think would be more likely? apple or amazon in that

scenario? >> i don't know but i do know that i think they're going to find it a lot harder than they think to get into this type of business line. the mobile revolution is going and moving faster and they're on everything from a kindle to an ipad so we believe though that as that grows netflix will grow and keep in mind that the european markets are attractive as well. >> let's not forget that netflix doesn't have to sell. it doesn't matter. he's going to be like i appreciate the money but no thanks we're happy. otherwise they have to go hostile. let's go to the technicals. it's been looking pretty hostile. what is the stock saying technically. >> even as the broader averages hang in here near record highs in many cases, the market has not been kind to momentum names and we could be at or near a

very compelling entry point. when you look at a one year start, you see the phenomenal run. the stock has been in in that well defined channel. holding that 150 day average. now since october 2012 stocks up 450% since the last time we were beneath that level. now you can see from the break down we're testing that key support level. the low end, the 150 day moving average. in my experience, leaning on a stock or shorting a stock while it's sitting on key support like this is not a strong play. you want to look to be a trading buyer down here. keep that stock close by at the 357 level. however, a break below there could set you up to fill that gap at 333. very favorable risk for award. >> chad, just once again, you see it possibly going to fall 50 a share and check out the online edition of talking numbers in partnership with yahoo! finance.

>> a top restaurant analyst has gone bearing. why is he bearing on panera, next. >> and target getting grilled over the massive security breach. >> and one profiting from the retail turmoil. but let's predict what's coming up on the closing bell today. >> i bet you didn't predict that, did you? >> no, i didn't. st. louis fed president is predicting unemployment will fall below 6% by the end of this year. we're going to look at what that could mean for interest rates and the stock market. >> we're also going to hear from somebody that says america's out dated skills immigration policy may be costing one new job every 43 seconds. >> did you feel that? that was another one. >> every 43 seconds. >> exactly and raise dividends and buy back stock. investors waiting anxiously.

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>> hard money time. let's take a look at what's going on in the world of metals precious and not so precious. falling to a five week low. we have a stronger dollar today but gold did touch the high of $13.91 last week. we also have silver, platinum, copper moving to the down side. copper down from two week highs. there's hopes out there that china will stimulate it's economy and china is the world's biggest copper consumer. >> all right. target cfo on capitol hill is being grilled over the retailers big security breach. up from d.c. with us on set. have any retailers done anything to beef up their own security in the wake of this? >> yeah, they have. there's a lot of interest in cyber security. i was out at a big cyber security conference in san francisco last month and you can tell talking to the vendors there a lot of retail interest in coming out and buying new

cyber security products. the question is how are those products being implemented inside these giant companies. what you're seeing is a sense that maybe within target they weren't doing enough to pay attention to what the tech folks were saying. they can spot these as they're happening and they're not being paid attention to higher up the food chain in terms of the corporate structure. that might be more where the problem is for a lot of companies than getting the right software solution on hand. >> but even if they do get it on hand, there's always someone in the criminal world who is ahead of them. you come out with a product but there's a hacker or whatever that's even smarter than that product. >> it's an endless arms race and we haven't figured out how we're going to stop it. once companies move to putting all of this valuable information online that's where the money is. just like bank robbers rob banks because that's where the money is, now they're going into the servers try to get the money. that's going to be a point of attack for the rest of our

lifetimes. it's going to be an endless cat and mouse game. >> the security industry while vital and necessary does seem to be fairly well vertically integrated. >> the security industry is huge and booming. companies are buying up other companies in that space and the interesting thing about that space is they're kind of -- the kind of company that can't necessarily succeed or else they drive themselves out of business. if you find the magic bullet solution to cyber security and you're a cyber security company it's not in your best interest to sell it. so it's an entry that succeeds on incremental improvements but not total victory. >> if you want to recruit, i would recruit the hackers. they know it best. >> they do. >> and then they sell your secrets to their hacker buddies in some other company. >> that's the problem. >> in defense of hackers, there's some hackers that i met traveling to these conferences that love the challenge of solving the puzzle. they want to get into the system

and see what's there. >> those are the ones you want working for your company. >> we got to go. >> thank you. >> today's mystery chart plays on to what he is talking about. the mystery chart, verifone. we talked about this. we talked aabout the chips and how the europeans have them and we don't. we might have to upgrade all of our opinions because they can't process the cards with the security chips. we said that would be good for a company like verifone and stock is up 40%. we like to take credit when we don't have any reason to. hast the street signs motto. >> a veteran short seller is out with three stocks he is shorting but not for the reasons you might think. >> panera is getting burned. why the sudden about face? we can ask him, next.

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suffering just a minor case of whiplash here. the dow was up by 98 points and now it's down by 30.

what was leading us down by the way was actually the transport at one point. the transports were down over 1%. we'll keep an eye on the markets for r you going into the close. >> speaking of going down, a veteran short seller out with three stocks you might want to consider shorting right now. let's bring in manager of the valley fund. herb greenberg. good friend of street signs. no time left for the segment gentleman. take it away buddy. it's your report. >> what i really liked about what andy is doing is its not looking at shorts the way many short sellers look at it from the perspective of in addition to doing what they do, they often look at frauds. he's not looking at frauds. he's looking at everything but frauds and he's looking at big cap stocks, $4 billion and up and those companies that have what's interesting here, business cycle issues. so he's going for what typically happens with businesses. hiccups. >> okay so we have three stocks.

let's bring in andy. hey there, good to have you on the show. let's take a look at family dollar. tell us about that. >> great. well family dollar, first of all it's great to be here. thank you for having me. family dollar is as you know a dollar store and what we have discovered and is pretty well-known is weakest of all of. they have margins that are worse than everybody else, and what's really interesting is it trades at a bigger multiple, and there's a lot of kind of hype that they're going to get bought out. but the bottom line is they own 3.5% of their stores, and it's very easy for walmart to go and get their own stores. so basically it's a play on margins declining, and they've also played some games with the balance sheet and we look at sale leasebacks and whatnot, but we believe the multiple will contract as walmart grows their base going forward. >> why do you hate fastenal. >> it's a great company.

they're a 3% position. they've done a great job growing over the years. they realized store growth was slowing down and they started growing kiosks. the problem is store growth is now down to less than 1.2%. kiosk growth a year ago was 4,000 a quarter. now it's 1600 a quarter. basically their growth is slowing and they don't have another channel to grow the business. >> one thing, andy, i have to say one thing though. fastenal has steam rolled anybody who has dared short that company over the years. it was almost a laughingstock toward short sellers because they were there forever thinking it was going to tumble and then, kaboom, it was the shorts that tumbled. >> it definitely has and we've looked at it for a long time, but what tells us now is an interesting time is if you look at the balance sheet, it used to be rock solid. now there's a bunch of variables that are moving counter to sales or larger than sales, and that's a tell to us, and the fact that the company in the last three years only bought back $9

million worth of stock, i think they concede it's inflated, and we believe it's going to go down. >> herb, you have made the point before that this market in general has actually been pretty devastating for the shorts but i would like to bring up your third stock here, andy, and that's cisco. >> cisco is a food drktedistrib and they're trying to do a large acquisition. we feel like it will be six or nine months before that happens. in the interim the business is really starting to suffer. volume growth is 1% to 2%. margins are getting hit. pricing is going down. sg & a is going up. we really see an opportunity here for margin contraction and -- i'm sorry? >> but, wait a minute, andy. if they buy u.s. food service because one of your big points in this is that their margins versus berkshire owen mclean, which is in the same business, but if they buy u.s. food service the whole story is off. there are plenty of people who

think that deal will go through. >> well, that's true, but as i said, you're going to get two or three quarters where you will see what the base business is doing without anything from u.s. food service. i think there the tell will be how the business is really performing, and people realize these are roll-ups and they're able to do a lot of things once an acquisition occurs that makes it difficult to analyze. but we really feel the next six months you're going to see some interesting things out of cisco. >> herb and andy, guys, we've got to leave it there. three interesting names to watch. herb, we appreciate it. andy, thank you very much. have great weekends. i know it's wednesday but it's my friday. >> it's your friday. let's move to pan nar ra. absolutely tanking following a big downgrade. so joining us on the phone is the man who is responsible for all of this, the man who made this call. bob darrington. you have been on the show many, many times. it's been your top pick in the sector. what happened? >> come on, mandy. you give me way too much credit

but thank you for that. you know, i think clearly the market likes predictability and confidence and i think in the big scheme of things, management of pan nar ra bread is doing what's right for their brand for the longer term. unfortunately those longer term investments that the company is making over the next several years within its business in technology and human labor and the skill sets to continue to make their brand desirable and cravable, unfortunately, will add some volatility to the earnings performance, and i think, unfortunately, that likely will lead to volatility in the share price. >> yeah, and bob, listen, the stock has tripled in five years, tripled in five years. you've been the guy -- it's been an amazing story. are you saying it's over? you had a five-year run, panera, it's a wonderful company. they make soups with bowls made of bread. that's all you need to know about panera. it's delicious but it sounds like you're saying the gains are over. >> come on, brian, you're being

way to hard on them. this is a brand consumers have had a love affair with. still, there's a long way to go. if i were to place bets, i would bet that, you know, sales likely for this concept on an individual store basis are probably 15% to 20% higher over the last three to five years. the step function to get there is going to mean some unpredictability in both the margin performance and some of the costs associated with it. so, you know, i just -- rather than saying the story is over, i think we're taking a pause to kind of collect ourselves, let's take a wait and see approach and let's see -- >> we should also say the stock is currently trading still quite a bit below your new price target. you downgraded it from $205 to $1 $190. >> what i would say is this company ultimately will be rewarded in the way it's able to drive revenue growth and

secondarily earnings growth and the revenue growth will come before the earnings growth will. the one thing we have to be cognizant of is this company has less predictability in its earnings growth so we may see some volatility there which will lead to a more shaky stock price performance. >> understood. a golf game-changer 260 years in the making next.

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because there is no expertise without collaboration. a sign of the times. 260 years in the making. for the first time in its history scotland's royal and ancient golf club will vote on whether women can join the club. the club sits right next to the first tee at st. andrew's. the vote, brian, is scheduled for september. certainly a historic moment. >> long overdue. i don't know what they'll do with all the top hats. >> and by the way -- >> here is our monocle cleaning station. there's no point in any of this stuff anymore in this society. give me a break. >> by the way, i looked it up, it's an urban legend that golf stands for gentlemen only ladies forbidden. >> i never even heard that. >> maybe it's an australian thing. it came from a medieval dutch

word for a club. it became in wide usage by the 16th century. >> it makes me sad i'm off for two days and this is the last thing i will hear on the show. my brain is officially full and i need to regurgitate it. thank you. >> thank you. enjoy your vacation. >> i will try not to be hit by a golf. >> "the closing bell" is now. golf. and we welcome you to "the closing bell" for this wednesday. i'm bill griffeth. >> and i'm sara eisen. happy to be with you, bill. we're watching a market that really has lost some gains. opened higher, lower. we're off the lows of the day but red arrows across the board for all three major indices. >> this herky-jerky market, this has been the trading pattern we've had. we'll talk about it with our panel in a moment. >> we'll see what happens in the last hour of trading. the big story, candy crush ge